Adani Green announces raising JPY denominated facility to refinance debt

Facility supported by MUFG Bank and Sumitomo Mitsui Banking Corporation with equal participation

2 min read Last Updated : Dec 02 2022 | 12:02 AM IST

Adani Green Energy Ltd (AGEL) said on Thursday it has raised a Japanese Yen (JPY) denominated facility to refinance its debt. The facility comprises JPY 27.9 billion ($200 million) amortising project loan facility, assessing the 16-year debt structure with door-to-door tenor of 10 years and average tenor of more than 8 years, said a company statement.

The fund was raised through AGEL subsidiary Adani Solar Energy AP Six Private Ltd. The project loan facility is supported by MUFG Bank and Sumitomo Mitsui Banking Corporation with equal participation.

The facility is linked to Tokyo Overnight Average Rate (TONA), a Japanese benchmark rate gauge, which yields close to zero highlighting the appeal to broaden the alternative pools of capital providing relatively competitive interest rates, the company informed.

“The company is committed to have access to long-term capital without depleting its growth capital and will continue to look at multiple alternative pools of capital to have the sustainable funding solution to spearhead India’s energy transition,” said the statement.

AGEL is one of the country's largest renewable energy companies with 20 Gw of solar and wind energy capacity (installed and under construction).

“The facility demonstrates AGEL’s pro-active and continued approach to access liquidity against the backdrop of a challenging interest rate environment in the broader markets, providing the long-term solution. With lower benchmark rate, lesser margin and historical low swap rates, this provides significant flexibility and a competitively priced funding solution for AGEL’s high grade renewable asset portfolio,” said Phuntsok Wangyal, chief financial officer, AGEL.

MUFG Bank Ltd., and Sumitomo Mitsui Banking Corporation acted as principal lenders for the facility. Latham & Watkins LLP and Cyril Amarchand Mangaldas acted as legal counsels for the transaction.